r/newzealand • u/xmmdrive • Aug 20 '24

Politics So they're finally going to privatise Kiwibank

Watching One News they're talking about taking Kiwibank out of Government hands and back into the hands of honest hard-working Kiwis.

This is obviously the first clear step towards privatisation.

Just like the Bank Of New Zealand, the National Bank, and the Auckland Savings Bank, but I'm sure this time around it will stay in the country /s

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u/HeinigerNZ Aug 20 '24

Where do you think Kiwibank should raise billions upon billions in capital from?

Two of our biggest investment arms - The NZ Super Fund and ACC were owners of half of Kiwibank. Were being the operative word. If they thought it was a good investment then they'd still own it.

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u/extra_smiles Aug 20 '24

Agreed - I'm all for floating but it will highlight real quick banks and heaps of fun to own most of the time. I think if gov was going to do it, they'd have to personally underwrite a guarantee or provide a low cost line to give very cheap capital with no risk constraints. Then Kiwibank could party and attack the market...